The Retained Profits of Franko Ltd at the Beginning of the Year

question 26

Multiple Choice

The retained profits of Franko Ltd at the beginning of the year were $270 000 and at the end of the year $320 000.Net profit after tax for the year was $510 000.During the year,$100 000 was transferred to general reserve.The proposed final dividend at the beginning of the year was $200 000 and at the end of the year $250 000.What was the amount of interim dividend paid during the year?

• A) $110 000
• B) $160 000
• C) $260 000
• D) $360 000

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Definitions:

Aggregate Demand

Aggregate demand represents the total sum of demand for all products and services in an economy, measured at a specific price level and during a particular time frame.

Full Employment GDP

The level of GDP at which all available labor resources are being used in the most efficient way possible, typically associated with a low unemployment rate.

C + I

Represents the sum of consumption (C) and investment (I) in an economy, indicating total expenditures on goods and services.

C + S

Represents the sum of consumption (C) and savings (S), which together account for all disposable income in an economy.